Subject Matter Jurisdiction Flashcards
SMJ Definition
Subject matter jurisdiction refers to the court’s authority to adjudicate based on the type of case and in some cases, the dollar amount in controversy
What jurisdiction are state courts considered?
General jurisdiction: which means they have authority to hear cases on any subject matter unless they are ousted of such power by state or federal law
In state court, subject matter jurisdiction is governed by what law?
state law
What do you need for diversity jurisdiction
need complete diversity and amount in controversy exceeding $75,000
What is the constitutional requirement of diversity?
Under Article III, federal courts have smj over two primary types of cases:
(1) federal question and
(2) diversity of citizenships
What does Article III provide?
Provides for federal jurisdiction over cases between citizens of different states
What kind of diversity does the constitution require?
Partial
What kind of diversity does 28 U.S.C. 1332 require?
28 U.S.C. § 1332 requires complete diversity
Who is considered diverse under 28 U.S.C. 1332?
- Citizens of different states of the United States
- Citizens of a state and citizens or subject of a foreign state
- Citizens of different states, in a case in which citizens or subjects or a foreign state are additional parties
- A foreign state (as plaintiff) and citizens of a state or different states
What must be involved to bring a suit into federal court under diversity?
A US citizen must be involved
What is complete diversity?
all plaintiff must have different citizenship than all defendants
When is diversity measured?
At the time of filing, someone moving before or after does not effect jurisdiction
Define the domicile test
There must be physical presence (express or implied) and an intent to remain their indefinitely
What kind of status must aliens have to determine a domicile?
Aliens must have permanent resident alien status are deemed citizens of the state of domicile. If they do not have this, they have their at home citizenship
Do stateless person eligible for diversity status?
No
How do beneficiaries, heirs, incompetents have citizenship?
have the citizenship of the person being represented and not that of a representative, trustee, guardian, executor, or administrator
How do class members how class actions or shareholder’s derivative suits have citizenship?
have the citizenship of the named representative(s) in the lawsuit
How do corporations and unincorporated associations have citizenship?
(1) state of incorporation and (2) principal place of business
How is the principal place of business defined?
were the corporation’s high level officers direct, control, and coordinate the corporations activities (the nerve center)
How do unions have citizenship?
all the members of the association
How are foreign states have citizenship?
treated under the federal law regarding sovereign immunity
Devices to create or destroy diversity
Collusive joinder bars federal jurisdiction
Changes of domicile to create diversity
Assignment of a claim to create diversity: a party may not assign an otherwise assignable claim to another party in a different state merely to create diversity.
Nominal parties: are not counted toward diversity
Party realignment: the court may required party realignment according to true party interest, and this may affect diversity
Amount in controversy
where the matter in controversy exceeds the sum or value of $75,000, exclusive of interests and costs
Good faith pleading standard
Amounts are determined by plaintiffs pleading if the claim is apparently made in good faith
This is determined at the time of the filing
Subsequent events do not oust jurisdiction
What counts toward the amount in controversy?
actual damages, punitive damages, future damages
What is not considered in the money damages
costs, attorneys fees, and interests
When is the amount controversy determined?
at the filing of the lawsuit
How is non-monetary relief governed?
Non-monetary relief is governed by the value of the object tests, sometimes based on the value to the plaintiffs, sometimes to the defendant
Pre-judgment
Pre-judgment interest up to the date of the filing, if permitted by law or contract, counts toward the jurisdictional amount in many federal circuit, but has been rejected in some cases
Pre-judgment interest to be incurred after filing and prior to judgment does not count toward the jurisdictional amount since it is not damage suffered as of the date of filing
Aggregation of claims to form the amount in controversy: single plaintiff v. single defendant
a single plaintiff may aggregate the damages and other appropriate amounts from all claims, both related and unrelated, against one defendant to form the amount in controversy.
Aggregation of claims to form the amount in controversy: multiple plaintiffs v. single defendant
General rule under § 1332: when two or more plaintiffs join in a single lawsuit against a single defendant, they may not aggregate claims, related or unrelated, in order to achieve the $75,000 + jurisdictional amount. This rule has two exceptions
(1) Joint and undivided interest: multiple plaintiffs may aggregate if the claims are based on a common and undivided interest
Supplemental jurisdiction exception for the amount in controversy
Supplemental jurisdiction exception: If one plaintiff meets the amount in controversy against the sole defendant, the other plaintiffs’ claims may be joined as supplemental. This does not eliminate the basic requirements for diversity.
Aggregation of claims to form the amount in controversy: single plaintiffs v. multiple defendant
the single plaintiff may not aggregate claims against multiple defendants. The test is same as for multiple plaintiffs against a single defendant: no aggregation, whether the claims are related or not.
Does class members need an amount in controversy
do not meet the amount in controversy as long as one name class member satisfies §1332
Federal Question Jurisdiction statute
Statute 28 U.S.C. § 1331: provides that federal courts have jurisdiction over any civil action arising under the Constitution, laws, or treaties of the United States.
Federal law means
federal statutes, federal regulations, executive orders, federal common law, international law, and interstate compacts
A supplemental claim…
one lacking its own basis for federal jurisdiction but that is so related to claims in action with such original jurisdiction that it forms a part of the same case or controversy under Article III.
Exxon-Mobil created two exceptions
1367(a) and 1367(b)
Exxon-Mobil exception 1367(b)
- Preventing plaintiffs from getting around the complete diversity rule
- If anchor claim is based solely on diversity jurisdiction, no supplemental jurisdiction over plaintiff’s claims against (1) stacked parties or (2) third parties
- Allowing plaintiffs to add any related claim for any amount against any diverse party, as long as at least one plaintiff has proper §1332 claim against the defendant.
Exxon-Mobile exception 1367(a)
> defendants may use full supplemental jurisdiction under 1367(a)
- Supplemental jurisdiction does not apply to federal cases
- Defendants may file a counter claim against plaintiffs only:
Its compulsory counterclaim under supplemental jurisdiction or the counter claim has an independent basis for federal jurisdiction, such as federal question or diversity
Define Removal jurisdiction
Authorizes the transfer of a case from state to federal court
Basic requirement for federal jurisdiction
- Must have been capable of original filing in federal court and it must be within the case or controversy boundaries of Article III, Section 2.
- Plaintiffs pleading in the state court must be based on some ground of federal jurisdiction and defendants notice of removal must invoke a jurisdictional statute
Procedures applicable to all removed cases
- Must file a notice of removal which includes a copy of all state court pleadings, and must be filed both the state and federal court and served on all parties
- Defendant unanimity: all defendants must join in the removal notice, except for those not served
- Removal is automatic–no need for the state or federal court to approve it
Notice of removal has to be filed when
30 days of defendant’s receipt of the initial state court pleading
